The promising potential for the Energy Inspection market in Mexico

 

Driven by new technical regulations and improved surveillance of existing ones, the Energy end-user sector in Mexico is a key growth area for firms engaged in the accredited inspection industry. Both accredited inspection firms as well as equipment suppliers stand to benefit from this rapid ongoing change.

A Revolution in the Mexican Energy Infrastructure

The increased demand for the services of accredited Energy inspection companies and associated equipment suppliers began in 2013 with the liberalization of the Mexican energy market. This historic change allowed hundreds of private investors and companies to enter the market but also demanded new regulation to manage risks and support public outcomes. In this new environment, accredited Energy inspection firms play a crucial role in ensuring new quality standards and regulations are being met.

Market liberalization inspired conversation about the future of Energy regulation in Mexico and continues to shape the market today. Topics such as licensing, renewables, energy infrastructure, among others, are being reviewed by Mexico’s Ministry of Energy with the aim of developing more forward-looking energy policy and regulation.

Opportunities in Energy inspection

Opportunities for conformity assessment bodies focused on Energy will span a variety of associated environments and industries. In order to raise standards and prepare Mexican infrastructure for the future, the Mexican government is turning to technical regulations and standards as a means of enforcement (see table).

In many cases this will require accredited Energy inspection bodies that can certify quality and conformity in products, processes, and installations. In the case of transportation, for example, the expected need for electric vehicles charging stations will come with two new opportunities: inspections of the installations and of the energy providing system (legal metrology).

Buildings

•        Integrate and apply energy efficiency codes in local construction regulations (state and/or municipal).
•        Maintain, update and strengthen the Energy Efficiency Technical Regulations and their evaluation systems.
Industry •        Unify criteria to request environmental and energy information for large energy users.
•        Develop incentive programs, accreditations and recognitions to promote Energy Management Systems (EnMS).
Transportation •        Develop technical standards for electric vehicle charging systems.
Municipal public services •        Update technical standards related to the design and operation of municipal services with integrated ICTs, associated with the concept of smart cities.
Agro-industry •        Develop technical standards applicable to equipment and systems used in agriculture.
Energy bids

•        Obligations of renewable energy

Demand continues to outstrip supply in Energy Inspection

Although the cost of Energy inspection is high, the market remains unable to keep up with the demand for accredited Energy inspection firms. This is especially true for inspections concerning electrical interconnections and natural gas in which there are only a few bodies available to meet the hundreds annual of inspection requests.

In the case of inspections of electrical interconnections, the number of bodies providing inspections is insufficient to meet the number of requests from industry. As it stands, there are 10 inspection units that must provide for nearly 800 requests for inspection per year. Furthermore, the number of requests for inspection of interconnection is expected to continue growing at 4% per year.

In the case of natural gas, the number of inspection bodies nearly meets demand, but the number of requests for inspection in this field is expected to increase rapidly in coming years. In Mexico there are currently only 15 inspection bodies accredited to the NOM-001-SECRE-2010 natural gas standards. Unless these bodies manage to significantly increase their capabilities, this number will have to grow rapidly to meet the 10-20% growth in demand expected over the next six years.[1]

More to come

Demand for accredited Energy inspection firms and associated equipment suppliers is unlikely to diminish in the near future. Sector & Segment expects the number of technical regulations focused on energy to continue growing as the Mexican Ministry of Energy implements the energy transition strategy, energy reforms, new regulations and new technical standards. As these changes are implemented, demand for accredited Energy inspection firms and OEMs will increase as a way of ensuring quality and conformity.

 

Sector & Segment Team


[1] https://www.gob.mx/cms/uploads/attachment/file/356363/2018_08_03_Unidades_de_verificacion.pdf